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Cost Per Encounter
Description:
This KPI shows your practice cost per encounter.
Why is This KPI Important?
This KPI is important because it helps you ascertain the cost to provide care for each patient you see. This becomes a valuable statistic when you are negotiating with managed care companies so you know what it will cost you on average to provide care to a child - especially in capitated contracts!
PMI Recommended Frequency to Run this KPI:
Monthly
Formula:
Total Operating Expense / Office Encounters
Show the Math:
$450,000 / 5,000 = $90.00
How Should I Track It?
This KPI can be tracked using an Excel spreadsheet by Practice and/or Department if you categorize expenses properly.
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